Progen Gets CellGen Cheap

Progen Pharmaceuticals Ltd. (Nasdaq: PGLA) has bought CellGate Inc., a Redwood City, Calif.-based oncology drug developer. The deal is worth up to $1.5 million in Progen stock, plus up to another $19.5 million in cash or shares if CellGate meets certain milestones. CellGate raised around $85 million in VC funding between 1998 and 2003, with the latest round using a post-money valuation of around $70 million. Backers include Johnson & Johnson Development Corp., New Enterprise Associates, HealthCare Ventures, Sprout Group, SVB Capital Partners and Ontario Teachers Pension Plan.